Every woman should have a set income for personal needs, regardless of working or being a homemaker: Dr Mani Pavitra

Though 77% of our population is literate, less than 24% is financially literate. Just 17% of teenagers are financially literate in India. At the global level, India ranks 73rd with a financial literacy rate of 24%. Financial literacy is the ability to understand and effectively use various financial skills, such as personal financial management, budgeting, and investing.

Many families live paycheck to paycheck and face huge debts due to poor financial planning. Through the Fortune Academy, we wanted to help the educated middle-class women regain confidence to re-enter the workforce. However, this alone was not sufficient. We observed that many women lacked financial literacy, which is the root cause for them not having financial independence or not being able to create wealth proportionate to their efforts. The first step in this journey is to stay physically fit and inculcate a right mindset. A fit body and mind enhances productivity as well as cuts down the chances of incurring avoidable hospital and allied expenditures.

No matter how high people grow in their career or how well they earn, they must learn to manage money well. Many rich, famous, celebrities who earned a lot lost it again due to the lack of financial discipline. Here too, financial literacy is the first step to financial discipline. There are also cases of many rich and famous who continue to still live on a budget.

Optimising finances

Financial success doesn’t always equate to financial awareness. Many financially successful women misuse money due to a lack of investment knowledge, often spending on liabilities rather than assets. Financial literacy is crucial for proper financial management. Women should creatively manage their finances. The rapid evolution of AI allows women significant opportunities. However, many waste a lot of time on social media, leading to poor earning, saving and spending habits. Women need to create additional income sources and optimise existing earnings. Passions and hobbies can be powered into enterprises using social media platforms. It is all about knowing one's strengths and putting it across to the target audience. The approach holds good for all verticals. The possibilities are limitless. Individuals should focus on inherent skills and interests.

Selfcare, unpaid labour and shared responsibilities

Women often do unpaid labour but feel guilty about thinking about financial dependence. They need to recognise their own contributions and communicate their needs confidently. Household expenses are a shared responsibility if women are also working partners. Having financial awareness will help in understanding financial roles and contributions better. Women need to set aside money for themselves, for family expenses and for understanding long-term investments. Many underestimate their financial needs, leading to inadequate planning. Every woman should have a set income for personal needs, regardless of working or being a homemaker. This is selfcare. This ensures financial independence and recognises their varied contributions. Many women lack financial literacy, which is the root cause for them not having financial independence or not being able to get returns or create wealth proportionate to their efforts.

Staying fit, saving the family savings

Health is the foundation. Neglecting it can lead to medical expenses that deplete the savings and wealth. Prioritising health allows better financial decision-making and overall well-being. Buying health insurance is crucial. This will ensure that savings kept for emergencies or for future projects are not used. People often make uninformed insurance choices, leading to inadequate coverage. Proper insurance planning with focus on coverage, premium, tenure, inclusions, and exclusions is needed. The best way to assess the insurance requirement is by visiting the best hospital that you are likely to visit. Know the amount they charge for the common medical procedures and surgeries, for treating rare disorders, for treating common ailments. This will give an idea of the cover one needs. Next, buying term insurance is a must to secure the needs of the dear ones. Insurance should not be seen as an investment.

Steps in financial planning

First, ensure financial security by saving 6-10 months of expenses. Next, attempt to achieve financial vitality and financial independence. Invest in education and upskilling. Skills and knowledge are the key for income generation. Regularly update and invest in new skills to stay relevant and increase earning potential. These will help in doing a particular task faster, better, perhaps at a lower cost and cater a wider segment. Make social media content creation a priority and not content consumption. The former provides scope for monetization. Entrepreneurs need to focus on marketing and content creation to build assets and wealth effectively.

Million Moms project impact

The project has helped many women discover themselves. Now, they have put their fitness and finances as a priority. Many of them are more energised, organised, managing their family's finances, and have started their own enterprises or have re-entered the job market. The project also focused on using available resources to the optimum rather than yearning for new. For instance, many thought going to a gym is a must to be fit. We showed them ways to be fit being at home using household items, creating a space for them. While money begets money in some cases, managing money well and investing wisely are essential for growth.